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GM being sued over imploding Bosch fuel pumps in Duramax diesel trucks

Texas-based law firm Hilliard Martinez Gonzalez (HMG) this week filed a class-action lawsuit against General Motors over an alleged issue with Bosch CP4 fuel pumps. The suit claims Bosch designed the CP4 pump to work with European diesel fuel, which is thicker than U.S. diesel. When GM installed that pump in the 6.6-liter Duramax engine used from the 2011 to 2016 model years, the lawsuit claims the thinner U.S. fuel didn't provide enough lubrication, allowing air pockets to form in the fuel pump. That, in turn, allegedly let metal rub against metal inside the pump, causing the pump to eventually disintegrate and "send thousands of metal shards into the fuel injection system and every part of the engine." The Detroit News reported on the most recent lawsuit filed in Michigan's Eastern District Court, but the case is another piece of nationwide legal maneuvering going on since at least last September. Every U.S. truck maker used the Bosch CP4 fuel pump, and HMG originally went after all of them, as well as Bosch. On September 30, 2018, HMG filed a class-action suit in Texas on behalf of eight plaintiffs. The law firm wanted to prosecute the affair under RICO — the Racketeer Influenced and Corrupt Organizations Act — and named 10 defendants: FCA US LLC, FCA North America Holdings, LLC, F/K/A Chrysler Group, Fiat Chrysler Automobiles, N.V., Ford Motor Company, General Motors LLC, Robert Bosch GmbH, Robert Bosch LLC, VM North America, Inc., and VM Motori S.P.A.  The firm filed another suit in Florida on Nov. 2, 2018, against the same 10 defendants, again under the RICO statute, this time on behalf of more than 30 plaintiffs. We don't know how many other suits might have been filed, but the two suits mentioned apparently didn't have legs — the courts dismissed both quickly. So HMG shifted its strategy away from the RICO angle, and focused its efforts on GM, filing suit in California on Nov. 20, 2018. Instead of trying to catch 10 fish with a small net, HMG wants to score one fish with a big net. The results have borne more promise for the plaintiffs. In July this year, a judge in California denied GM's motion to dismiss, noting "the alleged defect is central to the vehicleÂ’s function." This latest suit filed on Aug. 6 in Detroit singles out GM again.  The Bosch CP4 is known to be problematic, however.

We spy the Ford Mustang King Cobra early at SEMA

As is the case with most auto shows, waiting for the reveal of hot new models is the worst part. So, while our own Drew Phillips has been wandering the halls here in Las Vegas since they unlocked the doors for SEMA 2014, we didn't expect him to come back with any big reveals until later in the day. Until this happened.
Meandering by the Ford stand, Phillips eagle-eyed a trunk lid that caught his attention. Popping out from an otherwise draped 2015 Mustang, the matte black lid clearly has the name King Cobra embossed on the rear.
That name is interesting for a few reasons: to start, Ford hasn't used the Cobra name (without "Jet" attached) since way back in 2004, so a new snake is certainly something to take note of. Second, the King Cobra name dates all the way back to the ill-remembered Mustang II, meaning there is a clear link to Blue Oval history here.

Ford's Farley will challenge dealers to cut EV cost to customers by $2,000

DETROIT — Ford Motor Co Chief Executive Jim Farley will go to Las Vegas next week to roll the dice on a strategy to convince dealers to cut as much as $2,000 from the cost of delivering an electric vehicle to a customer. Ford has told dealers that one key topic for the meetings will be a discussion of new agreements that would govern how dealers sell Ford's expanding lineup of electric vehicles. Farley told analysts in July that Ford needs to cut $2,000 a vehicle out of selling and distribution costs to be competitive with Tesla Inc and other electric vehicle startups that sell directly to consumers without franchised dealers. About a third of those savings could come from what Farley called a "low inventory model," where customers order a vehicle and Ford ships it to the customer, rather than stocking vehicles on dealer lots for weeks or months. "We think that's about -- worth maybe $600, $700 in our system," Farley told analysts. Tesla can also adjust prices rapidly on its website, and keep most of the gain from a price increase. Ford declined to comment other than to say “we are excited to meet next week with our North America dealers to grow and win together.” Dealers said they expect Ford to outline minimum investments for charging stations and other equipment to support electric vehicle customers. A key question will be how quickly dealers will be required to install chargers, which dealers said can cost as much as $500,000. "The manufacturers so far have let us scale into it and I think Ford will hopefully do the same thing. You just can't say, 'Listen, we're going to sell 2 million electric cars five years from now and we expect you to put in five superchargers,'" said Rhett Ricart, owner of Ricart Ford, a large dealership in Columbus, Ohio. Tesla's success at selling electric vehicles without franchised dealers is putting pressure on all established automakers to overhaul their retail networks. A shift by Ford to a Tesla-style build to order system could come with caps on the profit margins dealers can earn on a new vehicle sale, some dealers said. "I see dealer margins still being very competitive, but they are going to shift," Farley said in July. Ford intends to put more emphasis on selling products and services after the initial vehicle sale, he said. Dealers said state franchise laws could give dealers leverage to resist efforts by Ford to set fixed prices or fixed fees for delivering electric vehicles.